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Vertical Strategy

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

One way to place a directional trade is with a vertical spread.

The type of vertical spread used will react differently given the volatility environments.

In the segment today, Tom and Tony dive into the two main types of vertical spreads:

  • Debit
  • Credit

We will use one over the other based primarily on our assumption and the current state of volatility. If you are looking to add this strategy to your portfolio, or just looking for a refresher, this is definitely a segment you do not want to miss!